Abstract

This paper aims at mapping and analyzing the determinants of industrial activity in Greek
regions in order to assess current investment patterns. For this purpose, we estimate a
conditional logit model of 226 new established firms for 1996 and 1997. Results give
interesting insights that are likely of particular importance to regional policy makers.
Noteworthy is the spatial concentration of firms in different prefectures while the large
metropolitan cities, Athens and Thessalonica, although with declining shares, prevail as
the dominant hosts. European regional policy seems to enhance firms� entry via its effect
on economic development variables, in contrast with the Greek Development Law, which
turns out non-influential.